Apple iPod Sales Slowed in Q2 2006

Apple Posted the first ever unit sales decline in the history of its popular digital music player; the iPod. Apple’s recent team up with Intel to produce Wintel machines and its continuing partnership with Microsoft adds both promise and speculation to Apple’s ability to generate continuing higher returns. This quarter, sales from Wintel machines were lower due to expected new models coming in later in the year.

Apple continues to remain on of the most profitable companies in the computer hardware industry and one of the most innovative. Some of Apple’s key performance features this quarter were the continuing success of its retail chain, increasing sales from the new iPod nano and Intel based machines and the continued success of the iTunes platform. With threats to the iPod line from integrated products such as MP3 cell phones, margin performance could come under pressure this year.

Quarterly review of Apple inc.’s performance, updated to include the name change, introduction of the iPhone and other major events in the company.

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